Strategic Marketing
Strategic management
Zarmina Siraj
5/10/2011
CHAPTER #1: INTRODUCTION
1.1 COMPANY PROFILE:
y ABOUT INFO TECH PKISTAN: Established in 1995, InfoTech now stands as a recognized market leader in Business & Information Management Consulting, Technology Solutions Provisioning, Systems Integration and Outsourcing Services. With deep business process knowledge, highly skilled resources and collaborative working culture they are committed to delivering Performance-centric Technology Solutions for our customer to help them become high-performance businesses and governments. A decade of their alliance partnership with industry leaders like IBM, Oracle/Siebel, Microsoft, Cisco, Computer Associates, and others, provide us distinct advantages to remain as a ³Dependable & Trusted´ technology partner to our customers. y EXECUTIVE TEAM:
Naseer A. Akhtar President & CEO Nadeem A. Malik VP Strategy & Corporate Development Suresh Agarwal MD InfoTech Global Amer Khan VP Middle East & Africa Amin Shakir VP Finance & Operations M. Usman Farooq System Integration Team Lead
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Muhammad Akram Territory Manager, North
y VISION OF COMPANY:
To remain a Trusted Technology Partner for their customers. They need to grow with their customers, locally as well as internationally. To enable their customers to sustain, grow and become highperformance businesses using their knowledge, skills & experiences. To help achieve their business goals by leveraging best-in-class ³need driven´ industry practices. The AIM is to implement ³Performance-Centric´ technology solutions using Collaborative Methodologies. Their code of business ethics is built around Corporate Governance by ³people & principles´ through well defined roles, and empowering people to perform as Responsible Corporate Citizens.
y REVENUE: y POSITION IN MARKET:
CHAPTER #2: LEARNING OUTCOMES
LEARNING OUTCOME 1:
The marketing and strategic objectives
. The marketing strategy section of info tech Pakistan includes includes information about:
y y y y
Product - your product(s)and services Price - what you will charge customers for products and services Promotion - how you will promote or create awareness of your product in the marketplace Place (distribution) - how you will bring your product(s) together with your customers.
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Marketing planning process of InfoTech Pakistan
Keeping in view the marketing objectives and strategies InfoTech Pakistan follow a specialized and up to date planning process for its strategic process that is the EXMAR.
EXMAR
y Product Description
EXMAR is a process, supported by a set of associated services, for developing Strategic
Marketing
Plans. It assists companies by: y Guiding them through a logical marketing planning process y Prompting and defining key data requirements y Displaying information graphically to aid understanding of the business y Providing advice at key stages y Allowing µwhat-if ¶ analyses y Automatically outputting the report resulting from the analysis. There are a number of techniques and methodologies incorporated in EXMAR including: y Gap Analysis y SWOT Analysis y Ansoff¶s Matrix y Boston Box y Directional Policy Matrix y Market Segmentation y Perceptual Maps y Porter Matrix y Objective and Strategy setting.
y IMPLEMENTATION OF THE STRATEGIC MARKETING PLANNING PROCESS USING EXMAR
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The successful introduction and implementation of the Strategic Marketing Planning Process within INFOTECH PAKISTAN is dependent on management commitment and high quality process Consultancy and training, as well as the EXMAR process support tools. This ensures that key members of staff are familiar with, and trained in, all the marketing processes and integrated Techniques :
Market Mapping and Segmentation Workshop
Following the step by step procedure in their planning process INFOTECH PAKISTAN proceeds next step that is the mapping and segmentation of the work shop. The objective of the workshop is to produce a structure for the defined market, which clearly identifies the different requirements that customers look to be satisfied. It should be noted that most organizations do not have access to the information to produce definitive segmentation structure that is 100% accurate. However INFOTECH PAKISTAN does have sufficient internal
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knowledge to produce something that is µroughly right¶ and a reasonable starting point. Where this is not the case, the process makes it very clear where the information holes are and the importance of that information. If research is required, the process ensures a rigorous and much targeted brief can be produced
The Workshop is structured into three phases, which are as follows: y Market Mapping Market mapping is used to develop a clear understanding of how a market actually works, looking at both the routes to market and the role of influencers. A key stage in market mapping is to identify who makes the decision between alternative offers, as it is these individuals/departments the segmentation review will focus on.
y Market Segmentation
Having identified the key junctions on the market map, these are analyzed to arrive at a segmentation structure. y Ansoff¶s Matrix
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The final part of this phase involves mapping product groups onto the identified segments to produce an Ansoff¶s Matrix. This defines the product-markets on which the audit and strategy will focus. EXMAR automatically constructs the Ansoff¶s Matrix
Guidance on Audit Preparation The whole process of planning involves at least 2 days. The objective of these two days is to ensure that the data required has been identified in detail and the format of the data is consistent. Data Collection and Research
The following information needs to be collected and input into EXMAR for each product-market as defined in the Ansoff¶s Matrix. This information is then used to drive the market audit. For each productmarket the following information is required. y Market size and growth (in volume and/or revenue terms) y Volume y Revenue y Market share (in volume and/or revenue terms) Current figures (latest budget for the current financial year) are requested. Historical data is also useful, as far back as available. If only some of these data items are known, the system will estimate data values where possible. In order for EXMAR to construct the Boston Box and the Directional Policy Matrix, it is necessary to define and gather the following information: y Market Attractiveness Factors (MAFs) - defined once for the business unit y MAF scores y Critical Success Factors (CSFs) y CSF scores for yourself and important competitors.
Whole planning process came into end by data entering in EXMAR
Key planning questions:
How much product would the organization is selling five years from now? ? How much would it be earning (gross and net), and how does that compare with
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your competitors? ? How many people would be working in its business? ? Who would orgs customers be, and where would they be located?
Marketing Audit
Macro Environment: PEST analysis
Political factors. These refer to government policy such as the degree of intervention in the economy. Political factors remain in favor of the InfoTech Pakistan the goods and services that government wants to provide does includes the IT infrastructure buildup in Pakistan government To much extent does believe in subsidizing integration based firms. Introduction of e-commerce in business environment are its priorities in terms of business support. Recent elected govt believes that Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. This vision has supported a lot InfoTech Pakistan in building their image frequently. Economic factors. The interest rates, taxation changes, economic growth at present In country proves to be helpful for company but on the other hand, inflation and exchange rates downfall proves to be hazardous factor for company growth. Higher interest rates may deter investment because it costs more to borrow, a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency, inflation may provoke higher wage demands from employees and raise costs, and higher national income growth may boost demand for a firm's products
y
y
y
Social factors. Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the Pakistan recent terrorist activism and uncertain economic situation
8|P ag e
y
has created a helm between market and customers. Foreign countries hesitating in entering into business ties with nationwide business firm. Last 4 years were difficult for the InfoTech Pakistan because un-stable political and terrorist activities Technological factors: new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. InfoTech being system integrator found some positive business on technological basis Environmental factors: environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The recent tsunami in Japan affects major biasness agreements of InfoTech Pakistan too. Legal factors: these are related to the legal environment in which firms operate. In recent years in the Pakistan there have been many significant legal changes that have affected firms' behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization¶s actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).
y
y
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Task Environment:
As part of their strategic marketing planning InfoTech Pakistan always made proper head out planning to tackle the task environment.
Task Environment: forces from suppliers, distributors, customers, and competitors. Suppliers: provide organization with inputs
Managers need to secure reliable input sources. Suppliers provide raw materials, components, and even labor. Working with suppliers can be hard due to shortages, unions, and lack of substitutes. Suppliers with scarce items can raise the price and are in a good bargaining position. o Managers often prefer to have many, similar suppliers of each item.
o o
Distributors: organizations that help others to sell goods.
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o
Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs. o Some distributors like Wal-Mart have strong bargaining power. They can threaten not to carry their product.
Customers: people who buy the goods.
o
Usually, there are several groups of customers. For Compaq, there are business, home, & government buyers
Competitors: other organizations that produce similar goods.
o o
Rivalry between competitors is usually the most serious force facing managers. High levels of rivalry often mean lower prices. Profits become hard to find. o Barriers to entry keep new competitors out and result from: Economies of scale: cost advantages due to large scale production. Brand loyalty: customers prefer a given product
Kotler¶s Value chain Analysis
Primary activities. Operations Outbound logistics
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Marketing and Sales: Services Support Activities The support activities assist the primary activities in helping the organization achieve its competitive advantage. They include: Procurement Technology development Human resource management Firm infrastructure
SWOT analysis
Strengths
y y y y y y
Asset leverage Market share leadership Strong management team Strong brand equity Strong financial position Well planned Channel Network
Weaknesses
y y y y
Poor supply chain High pricing Constant re-engineering of network engineers (availability) Low Sales ability
Opportunities
y y y
Innovation Product and services expansion Market of Airline Industry
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Threats y Economic slowdown y Price wars y Product substitution y Consumer loyalty y IBM Business
Consulting
Services,
Stuttgart
Marketing objectives
Objectives set out what the business is trying to achieve. InfoTech has set its objectives in set at two levels: (1) Corporate level (2) Functional level The SMART criteria used to be a tool for InfoTech Pakistan in shaping out their objectives: Specific - the objective should state exactly what is to be achieved. Measurable - an objective should be capable of measurement ± so that it is possible to determine whether (or how far) it has been achieved Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant - objectives should be relevant to the people responsible for achieving them Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to be realistic.
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LEARNING OUTCOME 2 y Understand the construction of a marketing plan
MM and its importance
7Ps Framework and 4¶s mix McCarthy's 4Ps mix has increasingly come under attack with the result that different marketing mixes have been put forward for different marketing contexts. Contends that the numerous and ad hoc conceptualizations undermine the concept of the marketing mix and proposes that Booms and Bitner's (1981) 7Ps mix for services be extended to other areas of marketing. Shows how the 7Ps framework can be applied to consumer goods and reports the results of a survey of UK and European marketing academics which suggest that there is a high degree of dissatisfaction with 4Ps. Also suggests that the 7Ps framework has already achieved a high degree of acceptance as a generic marketing mix among both groups of respondents. Overall provides fairly strong support for the view that Booms and Bitner's 7Ps framework should replace McCarthy's 4Ps framework.
Marketing mix followed and adopted by InfoTech Pakistan:
The Marketing Mix or 4 P's of Marketing
So far as InfoTech Pakistan is concerned they are employing traditional 4 ps marketing mix as their business strategy
y y y y
Product Price how
much
what you are
you charging
are for your
selling product
Promotion - how you tell people about your offer i.e. your product and price Place - how people can buy your product
14 | P a g e
So
for
info
tech
Pakistan,
the
aim
is
simple.
To sell the right product (that customers want) at the right price (which customers can afford and are willing to pay) at a convenient place using effective promotions. Product Life cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle The product revenue and profits for InfoTech Pakistan can be plotted as a function of the life-cycle stages as shown in the graph below:
Introduction Stage
In the introduction stage, InfoTech Pakistan the firm, seeks to build product awareness and develop a market for the product. Growth Stage
y
Product quality is maintained and additional features and support services may be added.
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y y y
Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience.
Maturity Stage.
y y y y
Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation.
Decline Stage
Ansoff¶s Matrix
The Ansoff¶s Growth matrix is a tool that helps businesses decide their product and market growth strategy. Ansoff¶s product/market growth matrix suggests that a business¶ attempts to grow depend on whether it markets new or existing products in new or existing markets.
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The output from the Ansoff¶s product/market matrix for info tech Pakistan is a series of suggested growth strategies that set the direction for their business strategy. These are described below: Market penetration Market penetration for info tech Pakistan seeks to achieve four main objectives: ? Maintain or increase the market share of current products ? Secure dominance of growth markets ? Restructure a mature market by driving out competitors; ? Increase usage by existing customers Market development InfoTech Pakistan follows many ways of approaching this strategy, including: ? New geographical markets; for example exporting the product to a new country ? New product dimensions or packaging: for example ? New distribution channels
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? Different pricing policies to attract different customers or create new market segments Product development Diversification
Budget management Project inflation is a reality every software solution faces. By controlling the growth of budget, a company can not only ensure their client is happy, they may be able to bring in a few extra dollars for their company, and that's quite a feat! A good budget provides accountability, so InfoTech Pakistan base on what can meet expectations and rely on learn from experience for future projects Action programs: Four question for Action programs 1-budget is enough and up to the mark 2-Team is well prepared and qualified to perform 3-supporting documents are prepared 4-time is suitable to start working
Controlling program
Managers at InfoTech are directed to regularly create budgets - for the whole organization and its constituent parts. The budget is a plan set out in numbers, which enables managers to exercise control. A budget might set out the planned income and expenditure of a system integrator base companies like InfoTech Pakistan for the next twelve months. Managers are then able to check whether sales are living up to budget expectations (on a weekly or monthly basis).
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Control is the process through which managers are able to keep their business on track. At InfoTech Pakistan Managers create various financial and budgetary planning tools, which they then monitor at regular intervals. When variances are spotted appropriate management actions are required to put the business back on
plan.
LEARNING OUTCOME 3: Implementing marketing plans
Marketing Organization: Which type suits for your company If someone want its company to succeed, at some point it will need to begin marketing its products or services. The old adage that the worst type of advertising is no advertising is still true. No matter what marketing budget may be, there are many different types of marketing that can bring advantage of. Let's take a look at a few of the more proven techniques that combine low cost with major results and adopted by InfoTech Pakistan Online Marketing Online marketing has opened up incredible revenues for InfoTech Pakistan. Thanks to companies like Google and Overture, they place ads for their company right along side the big guns at competitive prices. Never before has it been easier to market your business than it is right now. Offline Marketing Word of Mouth Marketing Word of mouth is still one of the most powerful forms of advertising on the planet. InfoTech Pakistan by creating such works esteem in business clouds creating good mouth words for its marketing. Market Implementation, implementation Skills for implementation and successful
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Definition: Marketing implementation executes the message formulated during the market research phase.
Successful implementation skills
Successful implementation of any marketing plan hinges on these four skill sets: 1. Diagnosis: anticipating what might go wrong and preparing for it 2. Identification of a problem source: looking for the source of a problem in the marketing function, the plan itself, the company's policies or culture, or in other areas 3. Implementation: budgeting resources wisely, organizing work effectively, motivating others 4. Evaluation: assessing the results of marketing programs Four step process for marketing control The essential elements of any control process are ? Establishment of Standards ? Measurement ? Comparing performance with the standards ? Taking corrective actions
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Evaluating marketing plan:
In total evaluation procedure this has bee found that the marketing ideas and specifically exmar approach followed by InfoTech Pakistan leading it towards competitive edge in e-commerce side and in system integration based business organization it is moving ahead.
FINDINGS AND RECOMMENDATIONS Findings:
Marketing strategy is closely aligned with the overall business strategy, supporting business goals and objectives, while uncovering opportunities to differentiate and emphasize the unique value of the offering Marketing strategy lies at the center of all tactical marketing, sales, product management and communication activities, ensuring that consistent messaging and branding occurs across the multiple contact points.
Recommendation:
Discovery Process A marketing strategy discovery process utilizing practical & proven methods is used to obtain background information, enable an accurate assessment of the current environment, determine potential strategic changes and prioritize opportunities that will deliver maximum business value Positioning and messaging Positioning defines and controls the overall identity of a product or service and involves the art of ensuring the unique benefits of the offering are effectively communicated and matched with the prospective customer¶s needs and desires.
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Tactical marketing plan recommendations From the numerous potential opportunities that are identified, recommendations are provided for inclusion in a tactical marketing plan. The flexibility of the format works well with marketing budgets of all size, allowing for expansion or contraction as the marketing budget fluctuates
Conclusion:
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable
The market concept of building an organizat ion around profitable sat isfact io n o f customer needs has help firms in achieving high standards, growth and competency.
References:
1. Baker, Michael the Strategic Marketing Plan Audit 2008. . p.3 2. www.infotech.com.pk 3. Marketing basics Marketing strategy based on market needs, targets and goals.journal 4. Aaker, David Strategic Market Management 2008. ISBN 9780470056233 5. Hausman Marketing Letter Definition of Marketing Series 6. Aaker, David Strategic Market Management 2008. ISBN 9780470056233 7.http://www.marketingthatworks.tv/ma...onof-marketing-series-marketing-strategy.html MarketingThatWorks.TV Marketing Strategy. 8. Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998 p. 27 9. Miles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.ISBN 0804748403.
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doc_645289459.docx
Strategic management
Zarmina Siraj
5/10/2011
CHAPTER #1: INTRODUCTION
1.1 COMPANY PROFILE:
y ABOUT INFO TECH PKISTAN: Established in 1995, InfoTech now stands as a recognized market leader in Business & Information Management Consulting, Technology Solutions Provisioning, Systems Integration and Outsourcing Services. With deep business process knowledge, highly skilled resources and collaborative working culture they are committed to delivering Performance-centric Technology Solutions for our customer to help them become high-performance businesses and governments. A decade of their alliance partnership with industry leaders like IBM, Oracle/Siebel, Microsoft, Cisco, Computer Associates, and others, provide us distinct advantages to remain as a ³Dependable & Trusted´ technology partner to our customers. y EXECUTIVE TEAM:
Naseer A. Akhtar President & CEO Nadeem A. Malik VP Strategy & Corporate Development Suresh Agarwal MD InfoTech Global Amer Khan VP Middle East & Africa Amin Shakir VP Finance & Operations M. Usman Farooq System Integration Team Lead
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Muhammad Akram Territory Manager, North
y VISION OF COMPANY:
To remain a Trusted Technology Partner for their customers. They need to grow with their customers, locally as well as internationally. To enable their customers to sustain, grow and become highperformance businesses using their knowledge, skills & experiences. To help achieve their business goals by leveraging best-in-class ³need driven´ industry practices. The AIM is to implement ³Performance-Centric´ technology solutions using Collaborative Methodologies. Their code of business ethics is built around Corporate Governance by ³people & principles´ through well defined roles, and empowering people to perform as Responsible Corporate Citizens.
y REVENUE: y POSITION IN MARKET:
CHAPTER #2: LEARNING OUTCOMES
LEARNING OUTCOME 1:
The marketing and strategic objectives
. The marketing strategy section of info tech Pakistan includes includes information about:
y y y y
Product - your product(s)and services Price - what you will charge customers for products and services Promotion - how you will promote or create awareness of your product in the marketplace Place (distribution) - how you will bring your product(s) together with your customers.
3|P ag e
Marketing planning process of InfoTech Pakistan
Keeping in view the marketing objectives and strategies InfoTech Pakistan follow a specialized and up to date planning process for its strategic process that is the EXMAR.
EXMAR
y Product Description
EXMAR is a process, supported by a set of associated services, for developing Strategic
Marketing
Plans. It assists companies by: y Guiding them through a logical marketing planning process y Prompting and defining key data requirements y Displaying information graphically to aid understanding of the business y Providing advice at key stages y Allowing µwhat-if ¶ analyses y Automatically outputting the report resulting from the analysis. There are a number of techniques and methodologies incorporated in EXMAR including: y Gap Analysis y SWOT Analysis y Ansoff¶s Matrix y Boston Box y Directional Policy Matrix y Market Segmentation y Perceptual Maps y Porter Matrix y Objective and Strategy setting.
y IMPLEMENTATION OF THE STRATEGIC MARKETING PLANNING PROCESS USING EXMAR
4|P ag e
The successful introduction and implementation of the Strategic Marketing Planning Process within INFOTECH PAKISTAN is dependent on management commitment and high quality process Consultancy and training, as well as the EXMAR process support tools. This ensures that key members of staff are familiar with, and trained in, all the marketing processes and integrated Techniques :
Market Mapping and Segmentation Workshop
Following the step by step procedure in their planning process INFOTECH PAKISTAN proceeds next step that is the mapping and segmentation of the work shop. The objective of the workshop is to produce a structure for the defined market, which clearly identifies the different requirements that customers look to be satisfied. It should be noted that most organizations do not have access to the information to produce definitive segmentation structure that is 100% accurate. However INFOTECH PAKISTAN does have sufficient internal
5|P ag e
knowledge to produce something that is µroughly right¶ and a reasonable starting point. Where this is not the case, the process makes it very clear where the information holes are and the importance of that information. If research is required, the process ensures a rigorous and much targeted brief can be produced
The Workshop is structured into three phases, which are as follows: y Market Mapping Market mapping is used to develop a clear understanding of how a market actually works, looking at both the routes to market and the role of influencers. A key stage in market mapping is to identify who makes the decision between alternative offers, as it is these individuals/departments the segmentation review will focus on.
y Market Segmentation
Having identified the key junctions on the market map, these are analyzed to arrive at a segmentation structure. y Ansoff¶s Matrix
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The final part of this phase involves mapping product groups onto the identified segments to produce an Ansoff¶s Matrix. This defines the product-markets on which the audit and strategy will focus. EXMAR automatically constructs the Ansoff¶s Matrix
Guidance on Audit Preparation The whole process of planning involves at least 2 days. The objective of these two days is to ensure that the data required has been identified in detail and the format of the data is consistent. Data Collection and Research
The following information needs to be collected and input into EXMAR for each product-market as defined in the Ansoff¶s Matrix. This information is then used to drive the market audit. For each productmarket the following information is required. y Market size and growth (in volume and/or revenue terms) y Volume y Revenue y Market share (in volume and/or revenue terms) Current figures (latest budget for the current financial year) are requested. Historical data is also useful, as far back as available. If only some of these data items are known, the system will estimate data values where possible. In order for EXMAR to construct the Boston Box and the Directional Policy Matrix, it is necessary to define and gather the following information: y Market Attractiveness Factors (MAFs) - defined once for the business unit y MAF scores y Critical Success Factors (CSFs) y CSF scores for yourself and important competitors.
Whole planning process came into end by data entering in EXMAR
Key planning questions:
How much product would the organization is selling five years from now? ? How much would it be earning (gross and net), and how does that compare with
7|P ag e
your competitors? ? How many people would be working in its business? ? Who would orgs customers be, and where would they be located?
Marketing Audit
Macro Environment: PEST analysis
Political factors. These refer to government policy such as the degree of intervention in the economy. Political factors remain in favor of the InfoTech Pakistan the goods and services that government wants to provide does includes the IT infrastructure buildup in Pakistan government To much extent does believe in subsidizing integration based firms. Introduction of e-commerce in business environment are its priorities in terms of business support. Recent elected govt believes that Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. This vision has supported a lot InfoTech Pakistan in building their image frequently. Economic factors. The interest rates, taxation changes, economic growth at present In country proves to be helpful for company but on the other hand, inflation and exchange rates downfall proves to be hazardous factor for company growth. Higher interest rates may deter investment because it costs more to borrow, a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency, inflation may provoke higher wage demands from employees and raise costs, and higher national income growth may boost demand for a firm's products
y
y
y
Social factors. Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the Pakistan recent terrorist activism and uncertain economic situation
8|P ag e
y
has created a helm between market and customers. Foreign countries hesitating in entering into business ties with nationwide business firm. Last 4 years were difficult for the InfoTech Pakistan because un-stable political and terrorist activities Technological factors: new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. InfoTech being system integrator found some positive business on technological basis Environmental factors: environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The recent tsunami in Japan affects major biasness agreements of InfoTech Pakistan too. Legal factors: these are related to the legal environment in which firms operate. In recent years in the Pakistan there have been many significant legal changes that have affected firms' behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization¶s actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).
y
y
9|P ag e
Task Environment:
As part of their strategic marketing planning InfoTech Pakistan always made proper head out planning to tackle the task environment.
Task Environment: forces from suppliers, distributors, customers, and competitors. Suppliers: provide organization with inputs
Managers need to secure reliable input sources. Suppliers provide raw materials, components, and even labor. Working with suppliers can be hard due to shortages, unions, and lack of substitutes. Suppliers with scarce items can raise the price and are in a good bargaining position. o Managers often prefer to have many, similar suppliers of each item.
o o
Distributors: organizations that help others to sell goods.
10 | P a g e
o
Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs. o Some distributors like Wal-Mart have strong bargaining power. They can threaten not to carry their product.
Customers: people who buy the goods.
o
Usually, there are several groups of customers. For Compaq, there are business, home, & government buyers
Competitors: other organizations that produce similar goods.
o o
Rivalry between competitors is usually the most serious force facing managers. High levels of rivalry often mean lower prices. Profits become hard to find. o Barriers to entry keep new competitors out and result from: Economies of scale: cost advantages due to large scale production. Brand loyalty: customers prefer a given product
Kotler¶s Value chain Analysis
Primary activities. Operations Outbound logistics
11 | P a g e
Marketing and Sales: Services Support Activities The support activities assist the primary activities in helping the organization achieve its competitive advantage. They include: Procurement Technology development Human resource management Firm infrastructure
SWOT analysis
Strengths
y y y y y y
Asset leverage Market share leadership Strong management team Strong brand equity Strong financial position Well planned Channel Network
Weaknesses
y y y y
Poor supply chain High pricing Constant re-engineering of network engineers (availability) Low Sales ability
Opportunities
y y y
Innovation Product and services expansion Market of Airline Industry
12 | P a g e
Threats y Economic slowdown y Price wars y Product substitution y Consumer loyalty y IBM Business
Consulting
Services,
Stuttgart
Marketing objectives
Objectives set out what the business is trying to achieve. InfoTech has set its objectives in set at two levels: (1) Corporate level (2) Functional level The SMART criteria used to be a tool for InfoTech Pakistan in shaping out their objectives: Specific - the objective should state exactly what is to be achieved. Measurable - an objective should be capable of measurement ± so that it is possible to determine whether (or how far) it has been achieved Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business. Relevant - objectives should be relevant to the people responsible for achieving them Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to be realistic.
13 | P a g e
LEARNING OUTCOME 2 y Understand the construction of a marketing plan
MM and its importance
7Ps Framework and 4¶s mix McCarthy's 4Ps mix has increasingly come under attack with the result that different marketing mixes have been put forward for different marketing contexts. Contends that the numerous and ad hoc conceptualizations undermine the concept of the marketing mix and proposes that Booms and Bitner's (1981) 7Ps mix for services be extended to other areas of marketing. Shows how the 7Ps framework can be applied to consumer goods and reports the results of a survey of UK and European marketing academics which suggest that there is a high degree of dissatisfaction with 4Ps. Also suggests that the 7Ps framework has already achieved a high degree of acceptance as a generic marketing mix among both groups of respondents. Overall provides fairly strong support for the view that Booms and Bitner's 7Ps framework should replace McCarthy's 4Ps framework.
Marketing mix followed and adopted by InfoTech Pakistan:
The Marketing Mix or 4 P's of Marketing
So far as InfoTech Pakistan is concerned they are employing traditional 4 ps marketing mix as their business strategy
y y y y
Product Price how
much
what you are
you charging
are for your
selling product
Promotion - how you tell people about your offer i.e. your product and price Place - how people can buy your product
14 | P a g e
So
for
info
tech
Pakistan,
the
aim
is
simple.
To sell the right product (that customers want) at the right price (which customers can afford and are willing to pay) at a convenient place using effective promotions. Product Life cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle The product revenue and profits for InfoTech Pakistan can be plotted as a function of the life-cycle stages as shown in the graph below:
Introduction Stage
In the introduction stage, InfoTech Pakistan the firm, seeks to build product awareness and develop a market for the product. Growth Stage
y
Product quality is maintained and additional features and support services may be added.
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y y y
Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience.
Maturity Stage.
y y y y
Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation.
Decline Stage
Ansoff¶s Matrix
The Ansoff¶s Growth matrix is a tool that helps businesses decide their product and market growth strategy. Ansoff¶s product/market growth matrix suggests that a business¶ attempts to grow depend on whether it markets new or existing products in new or existing markets.
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The output from the Ansoff¶s product/market matrix for info tech Pakistan is a series of suggested growth strategies that set the direction for their business strategy. These are described below: Market penetration Market penetration for info tech Pakistan seeks to achieve four main objectives: ? Maintain or increase the market share of current products ? Secure dominance of growth markets ? Restructure a mature market by driving out competitors; ? Increase usage by existing customers Market development InfoTech Pakistan follows many ways of approaching this strategy, including: ? New geographical markets; for example exporting the product to a new country ? New product dimensions or packaging: for example ? New distribution channels
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? Different pricing policies to attract different customers or create new market segments Product development Diversification
Budget management Project inflation is a reality every software solution faces. By controlling the growth of budget, a company can not only ensure their client is happy, they may be able to bring in a few extra dollars for their company, and that's quite a feat! A good budget provides accountability, so InfoTech Pakistan base on what can meet expectations and rely on learn from experience for future projects Action programs: Four question for Action programs 1-budget is enough and up to the mark 2-Team is well prepared and qualified to perform 3-supporting documents are prepared 4-time is suitable to start working
Controlling program
Managers at InfoTech are directed to regularly create budgets - for the whole organization and its constituent parts. The budget is a plan set out in numbers, which enables managers to exercise control. A budget might set out the planned income and expenditure of a system integrator base companies like InfoTech Pakistan for the next twelve months. Managers are then able to check whether sales are living up to budget expectations (on a weekly or monthly basis).
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Control is the process through which managers are able to keep their business on track. At InfoTech Pakistan Managers create various financial and budgetary planning tools, which they then monitor at regular intervals. When variances are spotted appropriate management actions are required to put the business back on
plan.
LEARNING OUTCOME 3: Implementing marketing plans
Marketing Organization: Which type suits for your company If someone want its company to succeed, at some point it will need to begin marketing its products or services. The old adage that the worst type of advertising is no advertising is still true. No matter what marketing budget may be, there are many different types of marketing that can bring advantage of. Let's take a look at a few of the more proven techniques that combine low cost with major results and adopted by InfoTech Pakistan Online Marketing Online marketing has opened up incredible revenues for InfoTech Pakistan. Thanks to companies like Google and Overture, they place ads for their company right along side the big guns at competitive prices. Never before has it been easier to market your business than it is right now. Offline Marketing Word of Mouth Marketing Word of mouth is still one of the most powerful forms of advertising on the planet. InfoTech Pakistan by creating such works esteem in business clouds creating good mouth words for its marketing. Market Implementation, implementation Skills for implementation and successful
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Definition: Marketing implementation executes the message formulated during the market research phase.
Successful implementation skills
Successful implementation of any marketing plan hinges on these four skill sets: 1. Diagnosis: anticipating what might go wrong and preparing for it 2. Identification of a problem source: looking for the source of a problem in the marketing function, the plan itself, the company's policies or culture, or in other areas 3. Implementation: budgeting resources wisely, organizing work effectively, motivating others 4. Evaluation: assessing the results of marketing programs Four step process for marketing control The essential elements of any control process are ? Establishment of Standards ? Measurement ? Comparing performance with the standards ? Taking corrective actions
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Evaluating marketing plan:
In total evaluation procedure this has bee found that the marketing ideas and specifically exmar approach followed by InfoTech Pakistan leading it towards competitive edge in e-commerce side and in system integration based business organization it is moving ahead.
FINDINGS AND RECOMMENDATIONS Findings:
Marketing strategy is closely aligned with the overall business strategy, supporting business goals and objectives, while uncovering opportunities to differentiate and emphasize the unique value of the offering Marketing strategy lies at the center of all tactical marketing, sales, product management and communication activities, ensuring that consistent messaging and branding occurs across the multiple contact points.
Recommendation:
Discovery Process A marketing strategy discovery process utilizing practical & proven methods is used to obtain background information, enable an accurate assessment of the current environment, determine potential strategic changes and prioritize opportunities that will deliver maximum business value Positioning and messaging Positioning defines and controls the overall identity of a product or service and involves the art of ensuring the unique benefits of the offering are effectively communicated and matched with the prospective customer¶s needs and desires.
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Tactical marketing plan recommendations From the numerous potential opportunities that are identified, recommendations are provided for inclusion in a tactical marketing plan. The flexibility of the format works well with marketing budgets of all size, allowing for expansion or contraction as the marketing budget fluctuates
Conclusion:
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable
The market concept of building an organizat ion around profitable sat isfact io n o f customer needs has help firms in achieving high standards, growth and competency.
References:
1. Baker, Michael the Strategic Marketing Plan Audit 2008. . p.3 2. www.infotech.com.pk 3. Marketing basics Marketing strategy based on market needs, targets and goals.journal 4. Aaker, David Strategic Market Management 2008. ISBN 9780470056233 5. Hausman Marketing Letter Definition of Marketing Series 6. Aaker, David Strategic Market Management 2008. ISBN 9780470056233 7.http://www.marketingthatworks.tv/ma...onof-marketing-series-marketing-strategy.html MarketingThatWorks.TV Marketing Strategy. 8. Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998 p. 27 9. Miles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.ISBN 0804748403.
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